Commodity Credit Corporation - Explained
What is the Commodity Credit Corporation?
Written by J. Mance Gordon
Updated at April 23rd, 2024
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What is the Commodity Credit Corporation?
The Commodity Credit Corporation (CCC) is an agency of the government that supports, stabilizes and protects prices and farm income. It creates an even platform for supplying agricultural products. Besides this, it assists in the timely dispensation of these goods.
What does the Commodity Credit Corporation Do?
The CCC management team is governed by the Board of Directors operating under the Agricultural minister who is a chairman and a director of the board by default. Besides the secretary, the president appoints seven members to the director. All these officers are US employees in the Agricultural wing. Human resource from Farms Service Agency (FSA) conducts price support, procurement, preparation, recycling and storage and preparation programmes. This is because CCC has no one operating it. Former president Franklin Roosevelt came up with a credit trade organization in October 1993 with a starting capital of $ 3 million. Most sources of these funds were the reconstruction of financial organizations. It is important to note that CCC became part of the US Agricultural wing in July 1939. Later in 1948, there was a formation of Federal Corporation in the Agricultural ministry by a written letter of the Property Credit Company. The Agricultural Act of 1996 altered the US agricultural policy. This Act, while being passed did not consider the importance of subsidizing income, prices of agricultural goods and other regulations. Those who produced products like cotton, wheat, and rice had their losses reimbursed so as to take care of the variance between the target price and the fluctuating market price. This 1996 Act placed a limit on expenditure, approved payment of a number of firms and also allowed choosing of commodities produced on the land The rules of the Central Committee which were revised through nomination method became operational in 10 August 2012. This law takes into consideration the welfare of the manufacturers in things like purchases, loans, and payments. Besides these, it ensures the availability of materials required in production and selling of agricultural goods which in return allows for circulation in the system. Currently, Commodity credit companies are administering vast national projects like income support projects, disasters, and protection. Another critical element work area for the CCC is the support from overseas which extends loans, guarantees the sale of products abroad and sends agricultural commodities to prevent hunger. Such support is mainly extended to developing countries.
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